MIXED SIGNALS IN THE JOB-TRAINING PARTNERSHIP ACT

The Job Training Partnership Act of 1982 was developed to train the disadvantaged for work or better jobs. The Act that passed targeted the economically disadvantaged but stressed efficiency in the operation of the program. Program performance standards were established, and local Private Industry Councils (PICs) were developed to operate the program and to involve local business in JTPA training. Critics argued that this structure resulted in “creaming” of participants to the exclusion of the most disadvantaged workers. We test the “creaming” hypothesis using data on JTPA participants in Tennessee in 1987 and a sample of disadvantaged workers in Tennessee extracted from the Current Population Surveys. We find that racial and welfare targets are met but that the most able among those groups are chosen for help. We also find some evidence of “channeling.” The most disadvantaged groups are less likely to receive the most successful type of training — on‐the‐job training. Finally, we present alternative strategies to encourage PICs to do less “creaming,” and we make predictions about their likely success. Copyright © 1991, Wiley Blackwell. All rights reserved